US DoJ Probes Price-Gouging by Sikorsky Aircraft Corp

The US Department of Justice (DoJ) is investigating a well-known maker of Black Hawk helicopters for allegedly overbilling the US government, the Sikorsky Aircraft Corporation’s parent company said Friday.

MOSCOW (Sputnik) – The United Technologies Corporation’s (UTC) quarterly report to the United States Securities and Exchange Commission disclosed that the US government was seeking $148 million in damages from Sikorsky and two of its subsidiaries.

"By letter dated July 13, 2015, the United States Department of Justice notified Sikorsky that it has opened a criminal investigation with respect to this matter," UTC said.

The DoJ investigation follows an October 2014 US government complaint alleging violations of the False Claims Act on the part of Sikorsky, Derco Aerospace and Sikorsky Support Services, Inc. (SSSI) from 2006 to 2012.

"Sikorsky and its subsidiaries intend to cooperate fully in the investigation," UTC, which agreed to sell Sikorsky to Lockheed Martin for $9 billion earlier this week, stated in its filings.

The US government alleges that Sikorsky and its subsidiaries charged the US Navy for added profits and overhead costs to the price of T-34 and T-44 training aircraft spare parts, manufactured by Derco and sold to SSSI in 2006.

It further claimed that SSSI submitted false Certificates of Final Indirect Costs from 2006 through 2012.

The US government made its False Claims Act court filing in late April, according to UTC’s report.